JACKSON, Miss. (WJTV) – As Black History Month soon comes to a close, Black business ownership in the capital city is poised to remain among the highest in the U.S.
According to LendingTree, 2.7% of U.S. businesses are Black-owned. In the Jackson metro, that number is 6.1%. Among metro areas in the top 10, eight are in the South. The Jackson metro has the highest share of Black residents (roughly 50%) compared to other cities in the top rankings, such as Atlanta, Birmingham and Memphis.
Despite recent drops in African American’s share of the overall population in recent years, Black business ownership overall has increased by 12.5%. Roughly three in 10 Black-owned businesses are in the health care and social assistance industry. African Americans account for more than 11% of those business owners.
Among gender demographics, African American women own roughly 40% of all Black-owned businesses. That is more than 80% higher than the business ownership rates of women overall.
Still, Black business ownership rates are disproportionally lower than their share of the overall population. The Jackson metro is roughly 50% Black, but only 6.1% of businesses are Black-owned. In the Atlanta metro, the area with the highest share of Black businesses nationwide, roughly 9% of its businesses are Black-owned, while its population is 34% Black. The Black population in 2021 was about 12.2%, while 2.7% of U.S. businesses at that time were Black-owned.
LendingTree has the following tips for anyone looking to start a small business.
- Leverage available resources.
- Have a solid plan.
- Before you launch your business, do your homework. Consider your target audience, competitors, goals, costs and more to create a business plan to help guide you in those early days. Your plan will evolve as you start and run your business; however, beginning with a well-thought-out strategy will position your business to succeed.
- Build a supportive network.
- The entrepreneurial journey will have many ups and downs, so developing a strong network is essential. Seek out mentors, fellow business owners, industry professionals, trade organizations and friends and family who can help provide advice, support, opportunities and encouragement along the way.
- Consider all paths to owning a business.
- There are various paths to becoming a business owner, including business incubator programs, business accelerators, internships, apprenticeships and more. Be open to the multiple ways you can launch a business, and you may discover an unconventional path that works for you.